Deferred contribution hike will cost PhilHealth P13B this year

PhilHealth spokesperson said Wednesday that the postponement of the 3.5% increase of its members’ contribution would cost the state insurer P13 billion.

PhilHealth spokesperson Rey Balena said this following President Rodrigo Duterte’s order to defer the premium hike implementation this year.

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“If we will push through with the premium adjustment, we will have additional P13 billion income from our direct contributors,” he said on ANC.

“Our projected income for 2021 is P90 billion, so we will have a P13-billion deficit in this area as far as collection is concerned.”

However, Balena said the public would be assured that PhilHealth has sufficient funds to implement the Universal Health Care law despite the deferment of contribution increase.

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“PhilHealth is still liquid. We have a reserve fund to weather the situation,” he said, adding the state health insurer has a reserve fund worth P137 billion.

“We will proceed with our programs, definitely,” he added.

Balena also expressed confidence that Duterte and his allies in Congress would fulfill their promise to give PhilHealth an additional budget for the UHC implementation.

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Deferred contribution hike will cost PhilHealth P13B this year

The 2021 national budget allocated P71 billion of subsidy for PhilHealth. A huge chunk of this was earmarked for the healthcare coverage for its indirect contributors or those in the low-income category who cannot pay their contribution out of their pocket.

“Umaasa kami sa funding na ipinangako ng President at iba pang ahensiya ng pamahalaan,” Balena said.

Last week, PhilHealth announced it “is implementing the scheduled contribution rate and adjustment in income ceiling for 2021 to ensure sufficient funding for the health care benefits of its 110 million members as mandated by Republic Act No. 11223 or the Universal Health Care (UHC) Law.”

Contribution for 2021 of members earning below P10,000 per month would be P350 a month. Those earning P10,000.01 to P69,999.99 would have to pay P350 to P2,449.99. Meanwhile, the monthly contribution of those earning P70,000 or higher is fixed at P2,450.

However, President Rodrigo Duterte ordered to forego any increase in members’ monthly contribution amid the COVID-19 pandemic.